With an app-fueled possession construction, Mage is the individuals’s horse

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BALTIMORE — The Pimlico Race Course winner’s circle is a grassy, hedge-lined ring close to the end line the place, on the third Saturday of every Might, the brand new Preakness champion, draped in a blanket of black-eyed Susans, is paraded previous TV cameras and VIPs to be met by his jubilant connections. Usually the milieu of white-haired homeowners and rosy-cheeked grandchildren, the circle additionally hosts the occasional dignitary, from princes of Saudi Arabia to sitting governors of Maryland to — 50 years in the past this week — Secretariat himself.

But when a sure chestnut colt ought to win the Preakness Stakes on Saturday, thus securing the second leg of horse racing’s Triple Crown, the scene within the winner’s circle might be not like any within the century-and-a-half historical past of this race — with the gathering of millionaires and grizzled horsemen more likely to be infiltrated by dozens of raucous, 30-something newbies whose possession micro-shares within the horse often known as Mage had been obtained for as little $50.

In different phrases, it could be under no circumstances not like the scene that unfolded two weeks earlier at Churchill Downs — the place Mage, a flippantly raced 15-1 shot with an enthralling backstory and an uncommon possession construction, outran 17 rivals to win the Kentucky Derby. Within the chaos of the winner’s circle, after they lastly lined up everybody who owned a chunk of Mage, the photographers taking pictures the standard victory photograph could have needed to change to a wider lens.

“It regarded like the duvet of ‘Sgt. Pepper’s,’ ” joked Ramiro Restrepo, one in every of Mage’s controlling homeowners, talking of the ensuing photograph, with its teeming horde of cocktail-toting, ballcap-wearing investor bros, who numbered greater than 100. (In actuality, the collage on the entrance of the Beatles’ “Sgt. Pepper’s Lonely Hearts Membership Band” comprises far fewer faces.)

It’s true, nonetheless, that Mage — a real champion of the individuals, in essentially the most literal sense attainable — is the closest factor horse racing has to a rock star in the intervening time and the most effective shot at a redemptive storyline for a beleaguered sport that typically seems to be on the verge of collapsing underneath the load of equine deaths and doping scandals. Equivalent to those that occurred within the run-up and aftermath of the Derby.


“That’s why I say Mage was like a present from above,” mentioned Brian Doxtator, co-founder and CEO of Commonwealth Racing, the “fractional funding platform” that, together with 391 micro-investors who purchased in through its app, owns 25 % of Mage. “The timing of it for our enterprise, our prospects and for horse racing couldn’t be higher. And horse racing did want this. … I do assume we’re placing a barely totally different lens over horse racing. And it’s at a essential juncture for the trade at this second.”

There’s a ragtag, underdog appeal with virtually all of Mage’s human connections: His jockey, Javier Castellano, snapped a profession 0-for-15 Derby skid with the win. His coach and co-owner, Gustavo Delgado Sr., is a legendary horseman in his native Venezuela, the place he received that nation’s model of the Triple Crown 4 instances, however had by no means completed higher than twelfth in two earlier tries within the Derby. Co-owner Restrepo is a gregarious, fifth-generation horseman with Colombian roots and a knack for blowing previous his price range.

“One heck of a melting pot,” Restrepo mentioned of Mage’s collective connections following the Derby win.

It was solely a 12 months in the past this week that Restrepo and Gustavo Delgado Jr. — the coach’s son and assistant — first laid eyes on Mage at an public sale of 2-year-olds that befell on the Timonium Fairgrounds, just some miles up Interstate 83 from Pimlico. Instructed by Delgado Sr. to not exceed the price range of $100,000, Restrepo and Delgado Jr. determined they may most likely go to $200,000 in the event that they wanted to — then stayed within the bidding for the horse they desperately wished till they lastly received him for $290,000.

That horse, from the primary crop sired by 2018 Kentucky Derby runner-up Good Magic, out of the Massive Brown mare Puca, was Mage. Although the acquisition barely brought about a ripple throughout the trade on the time — 25 horses fetched greater costs at that public sale, together with one, Hejazi, that went for $3.55 million — it could change the course of historical past.


“It was instinct. We needed to have him,” Delgado Jr. mentioned. “I informed Ramiro, we’re going to go after him, after which we’ll work out the place the cash was going to come back from.”

That budgetary overreach — and the monetary scrambling that adopted — is what led the cash-strapped new homeowners of Mage, a number of weeks later, to Commonwealth, a 2019 start-up within the fractional investing house that had had a large breakthrough in 2022, when its horse Nation Grammer received the $12 million Dubai World Cup.

As soon as Doxtator and Commonwealth associate Chase Chamberlin agreed to go in on 1 / 4 of the horse — plus their share of two years of annual coaching bills — it was time to supply him to the app’s customers, who numbered round 6,500 on the time. Shares had been $50 every, and whereas shareholders might revenue from each race earnings and finally stud charges, anybody who is aware of something about horse racing understands many extra investments flip into duds than flip into Kentucky Derby winners.

However Commonwealth sees its mission much less as a microinvesting device than as a community-builder. It sells an expertise as a lot because it does a racehorse. As a result of its buyers had proprietor standing, they may go to the paddock earlier than races and — ought to the whole lot break excellent — the winner’s circle afterward.


“Folks deal with the financials, however what we’re really attempting to do is construct a neighborhood of sports activities fan — I name them the ‘huge day trip’ crowd,” Doxtator mentioned. “These are those that invite 5 of their associates to the monitor or to a golf event. Or these are music festival-goers. These are people who find themselves accustomed to [bringing along] 4 or 5 of their associates. They don’t simply go do it themselves. … We get $50 shareholders within the paddock on a regular basis. I hear them say on a regular basis, ‘You possibly can’t do something like this for 50 bucks.’ ”

When Mage’s providing went reside on the Commonwealth app in January, it took simply 48 hours for shares to promote out. 300 ninety-one customers purchased in, with investments starting from $50 to $20,000. Greater than 100 of these Commonwealth buyers traveled to the Derby, with seats scattered throughout Churchill Downs.

“We informed them getting in, ‘We are able to’t make any ensures [about access].’ To begin with, this was our first Kentucky Derby, too,” Doxtator mentioned. “We didn’t know the way it was going to work.”


Within the wild aftermath of Mage’s inconceivable win, the Commonwealth crowd — distinguished by white “Mage” caps — converged upon the winner’s circle, initially overwhelming the safety personnel. “There’s all these individuals pouring in,” Doxtator recalled. “I believe the [security guards] had been lastly like, ‘Okay, if they’ve the hat on, we’ll allow them to in.’ ”

A bunch of the delirious Commonwealth customers — a few of whom, and this merely can’t be reiterated sufficient instances, purchased in for simply 50 measly bucks — lingered within the winner’s circle lengthy sufficient to take turns kissing the trophy.

Thanks largely to a quick point out on NBC’s telecast of the Derby, Commonwealth noticed greater than 6,000 new customers enroll within the first 48 hours afterward. Doxtator, 40, and Chamberlin, 32 — childhood associates from Kalamazoo, Mich. — fielded so many media inquiries, they enlisted one other buddy to assist them out as a PR contact. Among the many many trade calls they fielded had been some from brokers from the worlds of golf and tennis: Within the coming months, Commonwealth plans to department into these sports activities, with PGA Tour rookies Joey Vrzich and Cooper Dossey having already signed on.


Commonwealth wasn’t the primary firm to supply micro-shares of a racehorse and even the primary to win the Kentucky Derby; MyRacehorse had a chunk of 2020 champion Genuine. However maybe due to their youth and their backgrounds in tech start-ups, Doxtator and Chamberlin have discovered a foothold with a youthful, extra tech-savvy crowd; Doxtator mentioned the typical age of a Commonwealth person is 36, many years youthful than the typical thoroughbred proprietor, and a brand new person can go from downloading the app to purchasing a share in about 90 seconds.

And whereas the minimal price for a share of Genuine via MyRacehorse was $206, Commonwealth made positive to intention decrease with Mage.

“We’re attempting to democratize this sport,” Doxtator mentioned.

Throughout the embattled trade, individuals have taken discover. Dalmore Group, the broker-dealer via which Commonwealth provides its investments, mentioned in an announcement that Mage’s Derby win “despatched ripples via the horse racing neighborhood.”


“This democratization of the game has the potential to make horse racing extra inclusive,” Dalmore mentioned. “Mage’s victory within the Kentucky Derby is a testomony to the ability of fractional possession and its potential to revolutionize the horse racing trade. … The game of kings is now not reserved for only a privileged few.”

In the meantime, for the 391 Commonwealth customers who purchased in to Mage, the Derby win resulted in a $95 payout for every $50 they invested — on high of their preliminary funding — which continues to be far lower than what that very same $50 would have gotten them on the betting window, the place a $2 win guess returned $32.42. However based mostly on the stallion provides Commonwealth is already fielding for Mage as soon as his racing profession is over, Doxtator estimates these $50 shares will finally be value a minimum of $500 every.

And anyway, the cash is just a small a part of the draw. Watching a horse — your horse — cost to the end line in entrance of the pack, then making your manner all the way down to the winner’s circle to rejoice one other jewel within the Triple Crown and kiss one other trophy? Whether or not you’re in for a gazillion or simply 50 bucks — such a factor can be priceless.

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